Essay about Costs and Benefits of Globalization and Localization

Essay about Costs and Benefits of Globalization and Localization

Length: 1314 words (3.8 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

The debate over globalization and localization has long been fought as whether or not to pursue an international or isolationist foreign policy. Essentially, the term globalization means an integrationist approach to policy, whereas localization refers to a fragmentational approach to foreign policy. There are many issues in this debate, but none as complex and important as that of the costs and benefits of the economy. Other issues consequential to the topic are the political and social implications to these policies.

Economics runs all countries, whether or not they have a global or local approach to policy. Globalization, like all things, has both costs and benefits. Economically, the downfalls to globalization include the possibility that "the combination of increasing returns to scale and high transport costs may cause economic activity to concentrate somewhat accidentally in some areas at the expense of others"(Sachs 101). Simply, the costs of global trading will not balance among all states. Some states with many natural harbors and warm water ports will benefit from the increase in global trade more than countries that have few or no ports. Another problem certain countries may face is that if you have a wealth of a natural resource you may be forced to devote your economic strength on that one scarce resource instead of building an industry, which may prevent the development of your state (102). A third pitfall in economic globalization comes when "underrregulated and undercapitalzed banks" gamble with depositor funds (104). So banks without anyone to oversee their dealings and a small amount of money deposited within them have a tendency to recklessly invest the funds of their clients. In turn they lose most if not al...


... middle of paper ...


...d of state, which reduces the probability of living under the iron fist of an authoritarian government. Since typically democratic countries tend not to fight each other the possibility of war diminishes as well. Socially, globalization creates a multiculturalism that teaches acceptance of differences and appreciation of them. Understanding how other people live helps us define how we wish to live. Without knowing the cultures outside of our own we would always struggle to know what options we had.


Works Cited

Rodrick, Dani. "Globalisation, Social Conflict and Economic Growth," World Economy. Vol. 21, iss. 2 1998, 143-158.

Rosenau, James N. "The Complexities and Contradictions of Globalization," World Politics 98/99. 1998,15-19.

Sachs, Jeffrey. "International Economics-Unlocking the Mysteries of Globalization," Foreign Policy. Iss. 110, 1998, 97 111.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Costs and Benefits of Globalization and Localization Essay

- For one to understand the costs and benefits of globalization and localization one first needs to understand what each entails. Globalization is when a country involves itself into international affairs, economically, politically or even possibly culturally. Globalization expands beyond the local boundaries of a nation and spreads into other communities throughout the world. Localization is when a country chooses not to participate in global affairs and confines itself and its people from taking part in any type of involvement with any other country....   [tags: Globalization vs Localization]

Strong Essays
1161 words (3.3 pages)

Essay about Costs and Benefits of Globalization and Localization

- "The Complexities and Contradictions of Globalization," by James N. Rosenau, describes two issues that have plagued modern international policy and relations - globalization and localization. Discussion of these issues bring forth questions of whether or not countries should open up domestic policy to international influence, and whether or not they should maintain domestic practices at the risk of hindering possible development. Debates over the costs and benefits of globalization and localization are continuous and manifold, and I outline the basic arguments in this paper....   [tags: Globalization vs Localization Essays]

Strong Essays
1445 words (4.1 pages)

Costs and Benefits of Globalization and Localization Essay example

- "Globalization is unstoppable. Even though it may be only in its early stages, it is already intrinsic to the world economy. We have to live with it, recognize its advantages and learn to manage it," said Maria Livanos Cattaui in her article, The global economy - an opportunity to be seized (Business World, 1997). Many authorities agree that as the world enters into the twenty-first century, many economic, political, and cultural changes will take place due to what some people are simply calling the latest buzzword....   [tags: Globalization vs Localization]

Strong Essays
2527 words (7.2 pages)

Essay about Costs and Benefits of Globalization and Localization

- Self-destruction, traditional conservatism, prosperity, and poverty are all key words which describe the world in which we currently live in. The combination of these words and the fall of communism in 1989 may be the reason for new developments and the emergence of globalization and localization. Globalization and localization could possibly be the result of the growth in internationalism in marketing and production. Perhaps it is the combination of all of these and many other factors. No one factor could possibly encourage such developments as globalization and localization, developments which affect the world in its entirety....   [tags: Globalization vs Localization]

Strong Essays
1958 words (5.6 pages)

Essay about Costs and Benefits of Globalization and Localization

- When people realized that the earth was round, their curiosity peeked. Explorers set out to discover what exactly was in place. They returned to their homelands with new ideas, new products, and an increased knowledge about a world that appeared to increase in size. While today, we realize that the earth, did not in fact become larger; people just became aware of what was out there. Today the world still appears to "grow"; yet, there is a debate as to whether or not this is beneficial. In the times of Christopher Columbus, the expansion of the globe was referred to as exploration....   [tags: Globalization vs Localization]

Strong Essays
1726 words (4.9 pages)

Essay about The Pros and Cons of Globalization and Localization

- The concepts of globalization and localization are considered to be very significant in that they deal with the political, economic, social, and cultural lives of human society. Globalization can be defined as "any technological, psychological, social, economic, or political developments that foster the expansion of interests and practices beyond established boundaries" (Rosenau p. 16). On the other hand, the concept of localization limits or reduces these interests. It is designed to inhibit or prevent the movement of people, goods, information, norms, practices, and institutions outside those specific boundaries....   [tags: Globalization vs Localization]

Strong Essays
981 words (2.8 pages)

Pros and Cons of Globalization and Localization Essay

- Growing up in the United States, we have been lucky enough to have been blessed with a stable economy. There has always been the extreme feeling of complacency and stability that comes with being a very large, internationally respected country. Strangely enough, America does not only reap the benefits of globalization, but it also basks in the glory of localization. We have, as a country, experienced much success both internationally and domestically. For example, without our international businesses booming the way they are, our country would suffer from a great economical loss....   [tags: Globalization vs Localization Essays]

Strong Essays
1499 words (4.3 pages)

Essay on An Analysis of Globalization and Localization

- When attempting to determine the exact costs and benefits of globalization and localization, one could easily find it difficult to decide which would affect each nation in a more beneficial or detrimental manner. Both concepts are useful and noble ideas. Each, if properly implemented, can help the nation grow in some way or another and provide the inhabitants with a more rewarding place to live. But if the wrong concept is implemented in the wrong country, the costs afforded by that country could far outweigh the benefits, which it would otherwise enjoy....   [tags: Globalization vs Localization]

Strong Essays
1523 words (4.4 pages)

Essay on Globalization Will Prevail Over Localization

- The world and world economies today are very diverse. Everything is constantly changing and our nation is becoming more integrated everyday. The question is are we benefiting or are we getting hurt from this integration. In this paper I will try to weigh the costs and benefits of both Globalization and Localization. Opinions vary greatly concerning this subject. Depending on what part of the world you are from and what your economic standings are you may have an entirely different opinion than someone else....   [tags: Globalization vs Localization]

Strong Essays
1066 words (3 pages)

Essay on Nations Should Promote Globalization, Not Localization

- Globalization and localization are two conflicting trends in international politics today. Globalization is the spread of peoples, activities, norms, ideas, goods, services, and currencies from one area of the world to another. (Rosenau 15) Localization is the narrowing of horizons and the confinement of peoples, activities, norms, ideas, goods, services, and currencies to a particular geographic area. (Rosenau 16) Globalization and localization affect the world’s countries in three main areas, politics, economics, and culture....   [tags: Globalization vs Localization]

Strong Essays
1079 words (3.1 pages)